Social responsibility includes the well-being and professional competencies of the company’s employees, occupational health and safety, human rights, code of conduct and collaboration within the corporate network, product liability, and relations with local communities. Elcoteq’s aim in this context is to ensure the well-being of its employees, and to respect human rights and local cultures in all its operating locations
Elcoteq’s instructions on social responsibility are based on the SA8000 standard, which all Elcoteq units are expected to comply with. Elcoteq’s stakeholders expect good management of social responsibility that is in line with international standards. This is the reason why, for example, customers conduct regular audits of social and environmental responsibility issues at Elcoteq’s sites.
Elcoteq has been a member of the Kempen/SNS Smallcap SRI (Socially Responsible Investment) Europe index since 2003. Only companies that meet the criteria of the index in all the areas of ethical business conduct, personnel management and environmental protection are admitted to the index.
Main Tasks of Human Resources
The main task of Elcoteq’s Human Resources (HR) function is to ensure that the number of employees, their competencies and motivation support the company’s business objectives. The Human Resources function has concentrated in particular on defining and implementing the measures required by the following targets set in the company’s Strategic Management Process, which include mapping the competency potential of the company’s employees, aligning the organizational structure with the company’s business needs, defining and revising HR management policies, processes and operating models, and promoting a responsible corporate culture.
It is vital for Elcoteq’s business operations that the company is able to recruit and hold on to professionally skilled and motivated employees. Motivating remuneration, continuous training and the opportunity to take up new responsibilities in the organization are critical in maintaining the job satisfaction of employees and retaining them, and for the continuity of the company’s business operations. In 2005 Elcoteq started a project to assess the competency potential of its employees. The purpose of this project is to establish the existing special expertise of the employees, the competency levels, key tasks and roles, as well as the ability and willingness of employees to take up more challenging tasks in the organization. The company has revised its target-based bonus scheme as part of the Strategic Management Process. The personal targets for each employee were tied more closely to the company’s financial performance.
SA8000 as a Guideline
In its operations Elcoteq uses as a guideline the SA8000 standard of Social Accountability International, the main aspects of which relate to preventing the use of child and forced labor, working hours and remuneration, occupational health and safety, freedom of association and the right to collective bargaining. The standard is based on the conventions of the International Labor Organization (ILO), and on the United Nations’ Declaration of Human Rights, and the convention on the rights of the child, among others.
Occupational Health and Safety
Elcoteq develops its occupational health and safety management, and for example Elcoteq’s plants in Tallinn, Estonia and Pécs, Hungary have been granted the OHSAS 18001 certification.